Tagged 'customer loyalty'

Are You Tracking the Right Metrics? The ROI of Customer Loyalty

Posted by Jeannie Walters on January 8th, 2014 at 1:16 pm

What’s the return on investment (ROI) of a loyal customer?
People ask me this question all the time. It’s a great question, and the answer is not as straight-forward as you might think.
The equation is much simpler for customer acquisition expenses and returns.
1 customer > 0 customers
It’s easy to exclaim: We’re winning! We’re on top! If we invest $5.00 in customer acquisition, and we get a customer for $19.99, then it’s easy to see we’ve quadrupled our investment. Yay for us!
The mathematics behind customer loyalty is messy. It’s much more difficult to calculate, there is no simple equation for how to get a solid figure, and it depends on factors that fluctuate, such as discounts. The fatal error, however, occurs when we ignore customer loyalty. You see, even if calculating the customer lifetime value (CLV) is too daunting, you can get still get a good idea of your customer churn rate.
For an excellent explanation and walk-through of CLV, check out this infographic from KISSMetrics.

Keeping it real, churn-style
Churn is a little easier to digest. For the sake of keeping it simple: it’s literally the number of customers you acquire versus the ones you happen to be losing. If you gain 100 customers in a... Read more

Two Must-Haves for True Website Optimization

Posted by Mark Simpson on January 16th, 2013 at 5:57 am

Brands that regard their websites as a primary revenue source have three distinct priorities: give customers an optimal experience, create loyalty and convert potentially passive browsers into active buyers.
It’s not a coincidence that experience and loyalty precede sales in this short priority list; the relationship between exceptional customer experiences and revenue growth is fairly direct. The better your website speaks to your visitors, the more loyal they will become and the more sales you will generate.
The good news is that customers can (and should) be very active in the optimization process. Through their clicks, page views, bounces, reviews and purchases, our online customers are offering us helpful feedback about their online experiences, in real time.
So what can you do with all this data?
1. Testing
Using A/B and multivariate testing to discover your problem areas is a great first step. In fact, if you’re running an ecommerce site without testing in place, you’re probably losing valuable conversions and dollars as you read this.
No matter where you begin, whether it’s with shopping cart funnels, homepage bounce rates, search or call-to-actions, testing different variations of elements encountered along the path to purchase — and deciding which ones produce the highest conversions — will begin... Read more

Building Communities of Passionate Users: What I’ve Learned

Posted by Kristin Hambelton on August 31st, 2012 at 5:18 am

In the words of American farm worker, labor leader and civil rights activist Cesar Chavez: “We cannot seek achievement for ourselves and forget about progress and prosperity for our community... Our ambitions must be broad enough to include the aspirations and needs of others, for their sakes and for our own.”
Inspirational words in their own right, and applicable to Chavez’s cause, but I think there are also important takeaways when it comes to building and reinforcing a sense of community in business. It starts, and ends, with the customer. Organizations must ensure that customers’ aspirations and goals are at the center of their technology development and innovation ambitions. With a shared understanding of those goals, organizations can build the framework for a passionate, loyal community.
Within the B2C world, there are numerous brands that embody a sense of fervent community – Harley-Davidson and MINI are obvious examples. For B2B organizations – particularly those whose customers make long-term investments in technology and processes – building and sustaining a sense of community and instilling loyalty can be no less important.
In my experience at Neolane, it’s especially important for B2B organizations to reinforce that their long-term prosperity is directly... Read more

Building Customer Loyalty With Email Segmentation

Posted by James Trumbly on July 31st, 2012 at 8:00 am

Loyalty-targeted emails can result in open rates as much as 40 percent higher than bulk mailings. That’s a statistic worth noting. If you don’t currently use segmentation to cater to subscriber preferences and build loyalty among existing customers, now is the time to start.
Thank You Notes
A simple “thank you” for subscribing, purchasing, or providing feedback goes a long way toward building rapport with your audience. Let subscribers know you appreciate their business and offer them a special discount or coupon code to be used toward a future purchase.
Shopping Cart Recovery
Use shopping cart recovery software to remind customers of unfinished purchases. A timely email letting them know the cart is about to expire or that the items are now on sale may be enough to bring them back to your website.
Redemption Reminders
If you use a loyalty program that incorporates points, coupon codes, or e-dollars, send subscribers an email when these incentives are about to expire. They’ll appreciate the reminder and the tactic could boost your sales.
Feedback
Solicit customer feedback in the form of interest and opinion surveys, product reviews, and social sharing buttons. Customers appreciate knowing that you care what they think.
Shopping Preferences
Use previous subscriber behavior to target emails toward their individual... Read more

What’s it Mean to Put Customers First?

Posted by Brian Cavoli on March 19th, 2012 at 7:39 am

It’s easy to say that your marketing is customer-centric. Everyone does.  But do new messages or offers based on customer market trends and surveys really put the customer first?
True customer-first marketing requires a different approach. Matt Nitzberg, EVP of Communications and Media at dunhumby, discussed this at the Promotional Marketing Association’s GameChanger Conference in Chicago last week.  He said that marketing’s got a big problem right now. There’s just way too much of it coming at consumers and it’s pushing good customers away.  I know we’ve been talking about marketing overload for years, but Matt referenced a recent Wall Street Journal article that proves this isn’t just a cliché.
The article stated that the nation’s top 100 retailers sent an average of 177 emails to each of their subscribers last year. This is up 24% from 2010, and up a whopping 87% from 2007. Some of the most aggressive retail emailers, like Neiman Marcus, sent over 500 emails last year.  That’s 10 emails every single week. Multiply that by the number of other retailers you frequent and you have one crowded inbox.
Matt’s reaction, “if they can communicate that often and feel it is worth it, they have some very wealthy customers”.... Read more